Determinants of payout choice between open market repurchase, tender offer repurchase and special dividends

The paper aims to identify the variables contributing special payouts considering open market repurchase, tender offer repurchases, and dividends. A multinomial logit model has been used investigate choice of payout out 754 announcements made between 2004 2017 in India. study investigates agency cost, shareholder heterogeneity, clientele effect, distribution size, misvaluation, takeover threat. MNL results suggest that repurchase is chosen when threat high, firms are significant, or case undervaluation firms. Tender preferred high threat, low undervaluation. further nature ownership terms a business group affiliated standalone result suggests impacts dividend choice. Group driven by effect firms’ heterogeneity holds. Bayesian approach which based on combination previous information current data available for MNL. findings choices over dividends misvaluation heterogeneity.